IoT Security Market Size - Global Industry, Share, Analysis, Trends and Forecast 2023 - 2032

The Global IoT Security Market Size collected USD 20.5 Billion in 2022 and is set to achieve a market size of USD 306.2 Billion in 2032 growing at a CAGR of 27.7% from 2023 to 2032.

IoT Security Market Report Statistics

• Global IoT security market revenue is estimated to reach USD 306.2 billion by 2032 with a CAGR of 27.7% from 2023 to 2032
• North America IoT security market value occupied more than USD 6.6 billion in 2022
• Asia-Pacific IoT security market growth will record a CAGR of around 30% from 2023 to 2032
• Among security type, the endpoint security sub-segment generated around 36% share in 2022
• Based on application, the smart home & consumer generated around US$ 16.2 billion revenue in 2022
• Advancements in artificial intelligence (AI) and machine learning (ML) are popular IoT security market trend that fuels the industry demand

The Internet of things (IoT) is a combination of embedded software, hardware, IT services, and communication services. It helps in connecting various devices including consumer objects and industrial equipment over to a network and thus enables them to gather information and manage all the devices via software in order to increase overall efficiency enabling new and improved services. IoT aids in creating enhanced and smart communication techniques like smart homes, smart shopping, smart transportation, and smart healthcare among others. The key components of the internet of things include radio frequency identification (RFID), wireless sensor network (WSN), near-field communication (NFC), cloud services, data storage & analytics, and visualization elements and gateways. The Internet of things helps in the efficient and proper monitoring and management of multiple interconnected devices.

Global IoT Security Market Dynamics

Market Drivers

• Increasing adoption of IoT devices
• Growing number of cyber attacks
• Stringent government regulations

Market Restraints

• Lack of standardization
• High cost of implementation
• Complexity of IoT security

Market Opportunities

• Rise of cloud-based services
• Increasing awareness of IoT security

IoT Security Market Report Coverage

Internet of Things IoT Security Market Growth Factors

The increasing need for efficient regulatory compliance is one of the key aspects fueling the growth of the global IoT security market. Owing to a large amount of digital information being transferred across devices, the governments of various economies are focusing on taking steps to secure interconnected networks from virus threats and hackers. This is being achieved by enabling strict regulatory norms and frameworks. Hence, increasing compliance with the aforementioned regulations is another major factor accelerating the demand for IoT security solutions over the forecast period. In addition, advancements in technologies such as 4G LTE and 3G as well as data hacking threats have increased over the past few years which has forced governments of various countries to establish a strict regulatory framework in order to support the overall deployment of IoT security solutions. Also, the emergence of the smart city concept is projected to pose bright opportunities for the growth of the global IoT security market over the foreseeable years. Governments of developed economies such as the U.S., UK, Australia, Germany, etc. are also taking serious steps to enhance the overall development of smart cities by employing Wi-Fi hotspots at multiple locations within the city. However, the global IoT security market is anticipated to witness various challenges such as the high cost of installation.

Internet of Things (IoT) Security Market Segmentation

The worldwide market for iot security is categorized based on component, security type, deployment mode, organization size, application, end-use industry, and geography.

IoT Security Component Outlook

• Solution
  • Data Encryption and Tokenization
  • IDS/IPS
  • Security Analytics
  • Secure Software and Firmware Update
  • Device Authentication and Management
  • Secure Communications
  • Others (PKI Lifecycle Management, Distributed Denial of Service Protection)
• Services
  • Professional Service
  • Managed Service

According to the IoT security market forecast, services are generally considered to have a larger market share than solutions in the IoT security market. Consulting, implementation, and managed services for IoT security include security monitoring, threat detection, and incident response. These services assist businesses in identifying and mitigating security risks associated with IoT devices and networks. In the IoT security market, service providers may provide a variety of services ranging from basic security assessments to comprehensive security management programmes. IoT security solutions, on the other hand, include hardware and software items created to defend IoT networks and devices from various security risks. Secure networking options, encryption and authentication tools, and intrusion detection and prevention systems are a few examples of IoT security solutions.

IoT Security Type Outlook

• Network Security
• Application Security
• Cloud Security
• Endpoint Security
• Other security types (Email Security, Web Security)

Network security and endpoint security are two security types that typically account for the majority of market share in the IoT security market, as they are required to protect IoT devices and networks from various security threats. Network security entails protecting both the communication between IoT devices and the network and the network itself from unauthorized access and attacks. This includes both the network infrastructure (such as routers and switches) and the data transmitted over the network.

Endpoint security focuses on protecting individual devices from cyber threats such as malware, ransomware, and unauthorized access, such as sensors, gateways, and other IoT devices. Antivirus software, intrusion detection and prevention systems, and firewalls are common components of endpoint security solutions.

IoT Security Deployment Security Type Outlook

• On-Premise
• Cloud-Based

In recent years, the cloud-based deployment model has dominated the IoT security market. This is due to the fact that cloud-based security solutions have several advantages over on-premise security solutions. To begin with, cloud-based security solutions are frequently more scalable and adaptable than on-premise solutions. This is due to cloud providers' infrastructure and resources, which allow them to quickly adapt to changing security needs and easily scale their solutions to meet the needs of various organizations.

Second, cloud-based security solutions are typically less expensive than on-premise solutions. This is due to the fact that organizations do not need to invest in costly hardware and infrastructure in order to deploy and manage their security solutions. Instead, they can simply subscribe to the security services they require, which can be more affordable and easier to budget for.

IoT Security Organization Size Outlook

• Large Enterprises
• Small & Medium Sized Enterprises

Both large enterprises and small & medium-sized enterprises (SMEs) are significant players in the market for IoT security. However, in recent years, SMEs have been increasingly adopting IoT security solutions, and as a result, they have become a significant driver of growth in the market.

This is because SMEs are becoming more reliant on IoT devices and technologies to support their business operations, but they may not have the same level of resources as larger enterprises to invest in robust security solutions. As a result, SMEs are looking for cost-effective and scalable security solutions that can protect their IoT networks and data without breaking the bank.

At the same time, due to the high stakes associated with safeguarding large-scale IoT networks and the possibilities for cyberattacks to have a significant impact on their business operations, larger enterprises continue to invest heavily in IoT security solutions.

IoT Security Application Outlook

• Healthcare & Life Science
• Infrastructure & Cities
• Industrial system & Sensors
• Smart home & Consumer
• Transport & Urban Mobility
• Others

According to the IoT Security industry analysis, the healthcare and life science applications are critical in terms of security due to the sensitive nature of patient data and the potential consequences of a data breach. Similarly, cyber attacks on infrastructure and cities applications could compromise critical infrastructure systems and endanger public safety.

Industrial systems and sensors may face additional security challenges because they are used in manufacturing or other industrial settings where cyberattacks could cause physical damage or injury to workers. Smart home and consumer applications may be susceptible to computer hacking that compromise personal data and privacy, whereas transportation and urban mobility applications may be vulnerable to cyber attacks that compromise the safety and security of autonomous vehicles and transportation systems.

IoT Security End-User Industry Outlook

• Manufacturing
• Government & Public
• Retail
• Smart Consumer Electronics
• Healthcare
• Automotive
• Energy & Utilities
• Supply Chain Logistics
• Transportation
• Other End-use Industries (Education, BFSI, Agriculture, etc.)

Security is of utmost importance in the healthcare sector because of the sensitive nature of patient data and the potential repercussions of a data breach. Similarly, vital infrastructure systems inside the public sector and government may be compromised by cyberattacks, endangering public safety.

Manufacturing industries may face additional security challenges because they are vulnerable to cyber attacks that can cause physical damage or injury to workers. Cyber attacks on retail and smart consumer electronics applications may jeopardise personal data and privacy.

The market for IoT security is anticipated to expand as businesses look to defend their IoT networks and data from cyber threats. Security is a major concern across all industries that use IoT technology.

IoT Security Market Regional Outlook

North America

• U.S.
• Canada

Europe

• U.K.
• Germany
• France
• Spain
• Rest of Europe

Asia-Pacific

• India
• Japan
• China
• Australia
• South Korea
• Rest of Asia-Pacific

Latin America

• Brazil
• Mexico
• Rest of Latin America

The Middle East & Africa

• South Africa
• GCC Countries
• Rest of the Middle East & Africa (ME&A)

IoT Security Market Regional Analysis

North America is the region with the largest market for IoT security, due to early adoption of IoT technology and the existence of multiple well-known IoT security firms. The United States accounts for the greatest share of the North American market for IoT security because there is such a strong need for IoT security solutions across numerous industries, including healthcare, manufacturing, and energy. Europe is the second-largest market for IoT security, due to the rigorous legislative environment for data privacy and security and the growing usage of IoT technology across numerous industries. The three countries that contribute the most to the European market for IoT security are the United Kingdom, Germany, and France.

The Asia-Pacific region is the fastest-growing market for IoT security because of the increasing adoption of IoT technology and growing awareness of the importance of IoT security in various industries China, Japan, India, and South Korea are major players in the Asia-Pacific market for IoT security.

Internet of Things (IoT) Security Market Players

Key players involved in the global IoT security market are focusing on key market strategies including mergers and acquisitions with local as well as established players. Partnership with multinational companies to strengthen their market reach and goodwill is also anticipated to be a major market strategy in the global IoT Security industry. Some of the global IoT Security companies profiled in the report include Infineon Technologies, Cisco Systems, Intel Corporation, Axeda Machine Cloud, Wurldtech Security, Alcatel-Lucent S.A., Siemens AG, Checkpoint Technologies, IBM Corporation, AT&T Inc., Huawei Technologies Co. Ltd, and NETCOM On-Line Communication Services, Inc.